The Global Research Initiative and Economic Intelligence Council have reported that the Red Sea crisis will have a long-term impact on global trade through 2025.
Due to this crisis, transport travel times have increased by 30%.
And global shipping capacity has decreased by 9%, resulting in a 40 to 60% increase in shipping costs.
This situation is expected to adversely affect Asia, Africa and Europe.
However, despite the ongoing Red Sea crisis, the Port of Colombo showed a 25% increase in transshipment volume in January compared to the previous year.
This is because the port of Colombo has become a major transit point for shippers diverting their vessels to the Cape of Good Hope.
Transshipment volume accounts for a significant 81% of the total operation.